What's Happening?
Also, a micromobility startup that originated as a spinout from Rivian last year, has successfully raised an additional $150 million in a Series D funding round. This latest investment brings the company's total funding to $455 million in less than two
years. The round was led by Prysm Capital and saw participation from existing investors including Eclipse, Greenoaks, and MVP Ventures. The company, which initially focused on pedal-assist electric bikes and commercial cargo quads, is now expanding its business to include autonomous delivery vehicles. This new capital is specifically earmarked to accelerate the development of Also's autonomous driving technology and the simultaneous progression of multiple autonomous form factors. These future vehicles are designed to utilize the same electric architecture developed for its existing consumer electric pedal-assist bike and commercial electric delivery quad. This funding follows a previous $200 million round led by Greenoaks, which also included a strategic investment from DoorDash and a multiyear commercial agreement for autonomous delivery vehicle development and deployment.
Why It's Important?
This significant funding for Also underscores a growing trend in the U.S. transportation and logistics sectors: the increasing investment in autonomous delivery solutions and micromobility. The expansion into autonomous delivery vehicles by a company with strong ties to an established EV manufacturer like Rivian signals a potential shift in how goods are transported, particularly in urban and last-mile delivery contexts. For the U.S. economy, this could lead to increased efficiency in logistics, potentially lowering delivery costs and speeding up supply chains. Companies like DoorDash, which has already partnered with Also, stand to gain from more cost-effective and potentially faster delivery methods. The development of autonomous technology also creates new job opportunities in engineering, software development, and maintenance, while potentially displacing traditional delivery driver roles in the long term. Furthermore, the focus on smaller-form-factor electric vehicles aligns with broader environmental goals to reduce carbon emissions in transportation, impacting public policy discussions around urban planning and infrastructure for electric and autonomous vehicles.
What's Next?
With the new capital, Also plans to accelerate the development of its autonomous driving technology and advance multiple autonomous form factors. This suggests that the company will likely be conducting more extensive testing and potentially pilot programs for its autonomous delivery vehicles in the near future. The existing multiyear commercial agreement with DoorDash indicates that we can expect to see these autonomous delivery vehicles deployed in real-world scenarios, likely starting with specific markets or routes. Also will also continue to leverage Rivian's technology, retail presence, and economies of scale as it grows, which could lead to further integration or collaboration between the two companies. Additionally, the company is still working on fulfilling orders for its e-bikes, with initial deliveries of its performance and standard models expected to begin in the fall. The success of these initial deployments and the continued development of their autonomous technology will be crucial in determining Also's market penetration and impact on the micromobility and autonomous delivery sectors.
Beyond the Headlines
The strategic investment in Also by major venture capital firms and a partnership with DoorDash highlights a broader industry belief in the viability and necessity of autonomous last-mile delivery. This development could trigger a significant transformation in urban logistics, potentially reducing traffic congestion and pollution in cities by replacing larger delivery vehicles with smaller, electric, autonomous units. However, it also raises important ethical and regulatory questions regarding the safety and liability of autonomous vehicles, as well as the societal impact on employment for delivery drivers. The vertical integration approach, as highlighted by Prysm Capital's co-founder, suggests a move towards comprehensive control over the manufacturing and technological stack, which could lead to more robust and specialized solutions but also create higher barriers to entry for competitors. The long-term implications include a potential reshaping of urban infrastructure to accommodate these new forms of transportation and a re-evaluation of labor policies in the face of increasing automation.
